FX May 20, 2021 / 12:38 pm UTC

Chart USD/JPY Update: Choppy trade to turn lower

By Mike Macdonald


R3110.15**61.8% ret of Mar-Apr fall
S2108.34*7 May (w) low
R1109.79*13 May (w) high
S4107.75**38.2% ret of Jan-Mar rally

Asterisk denotes strength of level

13:25 BST  - Choppy gains have faded below 109.50, with prices now once again balanced around 109.00. Intraday studies are mixed/negative, and daily readings continue to track lower, highlighting fresh downside development in the coming sessions towards the 108.34 weekly low of 7 May. Negative weekly charts point to further slippage towards critical support at the 107.75-108.00 area. Meanwhile, resistance remains at the 109.79 weekly high of 13 May. An unexpected close above here will turn price action cautiously Positive and extend April gains towards 110.00/15.

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